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Mortgage delinquencies fall sharply in Q1

The mortgage delinquency rate fell significantly in the first
quarter of 2018 after rising in hurricane-impacted states to end 2017, the
Mortgage Bankers Association (MBA) reported on Wednesday.

“Mortgage delinquencies decreased from the previous quarter
across all loan types – conventional, VA, and in particular, FHA – as the
effects of the September hurricanes dissipated,” according to Marina Walsh,
MBA’s vice president of industry analysis.

“The strong economy, low unemployment rate, tax refunds and
bonuses and home price appreciation were key factors that helped push
delinquencies down in the first quarter,” she said.

The adjusted delinquency rate stood at 4.63 percent, down 54
basis points from the fourth quarter and down eight basis points from one year
earlier.

The serious delinquency rate, or percentage of loans 90 days
or more past due or in the process of foreclosure, was 2.61 percent in the
first quarter of 2018, down 30 basis points from the fourth quarter, and down
15 basis points year over year.

Delinquencies in the hurricane-impacted states of Texas and
Florida declined sharply. The unadjusted delinquency rate in Texas dropped by 1.7
percentage points to 5.62 percent in the first quarter. The overall delinquency
rate for Texas was 5.05 percent prior to the hurricane.

In Florida, the delinquency rate dropped 2.3 percentage
points to 6.59 percent in the first quarter. Prior to the hurricane, the
overall delinquency rate for Florida was 4.07 percent.

Four out of the top five states with the highest 90 day
delinquency rate in the first quarter of 2018 were impacted by the hurricanes:
Florida, Mississippi, Louisiana and Texas, MBA said. The other state in the top
five was New Jersey.